Protesters urge RI to default on 38 Studios debt

AP , Associated Press

May. 28, 20135:08 PM ET

PROVIDENCE, R.I. (AP) — Protesters unhappy with Rhode Island's failed investment in former Red Sox pitcher Curt Schilling's video game company are urging state leaders to default on the money it owes for the deal.

About 20 people marched Tuesday to the Statehouse, where they met with two state lawmakers who oppose paying the more than $100 million the state owes bond holders on the 38 Studios deal.

State Reps. Karen MacBeth and Spencer Dickinson favor legislation that would prohibit the state from paying the money. They say insurance on the bonds will pay bond holders, should the state default.

But proposals to default are opposed by Gov. Lincoln Chafee (CHAY'-fee), who says the state must honor its debts.

38 Studios filed for bankruptcy last year, leaving the state on the hook for some $100 million.

PROVIDENCE, R.I. (AP) — Protesters unhappy with Rhode Island's failed investment in former Red Sox pitcher Curt Schilling's video game company are urging state leaders to default on the money it owes for the deal.